What could you learn from young investors?
Young people in Australia – otherwise known as Millennials- often get a bad rap when it comes to money matters. But it looks like they are leading the pack in the property investment world, according to a new report from ING Direct. What could you learn from this burgeoning cadre of new wealth builders?
The new generation of investors
It looks like there might be a passing of the torch on investment.
What do you think the average property investor looks like? For most people, they might think of people who are in their 40s or 50s, looking at retirement after their kids have flown the nest. If that's what you thought of, you'd be right – to a certain extent. A CoreLogic RP Data investor report from June found that most investors are those with a middling income and are usually between 50 and 64 years old.
But it looks like there might be a passing of the torch on investment, as younger Australians are quickly realising the power that property can have over their future wealth. ING Direct's survey of 1,000 Aussies found that 22 per cent of people between the ages of 18 and 34 own an investment property – that's more than Gen X and even Baby Boomers. They clocked in at 20 and 19 per cent respectively. It looks like the younger generation has finally twigged about the benefits of owning property.
What are the benefits of investment?
If you aren't already a property investor, you might be wondering what those benefits are yourself. After all, the news is always awash with people's opinions and ideas about the property market and how it's going to crash, or not going to crash – it seems to change every day!
Rather than opinions, let's look at some facts: CoreLogic data tells us that properties all across Australia continue their rapid growth with little end in sight. Properties in Brisbane, for example have seen capital gains of close to 5 per cent over the last 12 months. If you had bought a $500,000 property last year, it might now be worth $525,000! That's $25,000 earned, just by investing in property and being patient.
Just like all good things, it's clear that property investment is a hard secret to keep! The younger generations are catching on, but it can still be tough making that first step on the investment ladder no matter how old you are. If you're interested in finding out more about how to make the most of your money, get in touch with the team at Think Money today.